Understanding Data Resource Management: Key Concepts and Business Value
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This chapter delves into the significance of data resource management within organizations. It explains the business value of implementing data management processes and technologies, highlighting the advantages of a database management approach compared to traditional file processing systems. Additionally, the chapter covers essential database concepts, including different types of databases, data warehousing, data mining, and fundamental database structures. Practical examples illustrate how database management software supports business operations and decision-making.
Understanding Data Resource Management: Key Concepts and Business Value
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Presentation Transcript
Chapter5 Data Resource Management
Learning Objectives • Explain the business value of implementing data resource management processes and technologies in an organization. • Outline the advantages of a database management approach to managing the data resources of a business, compared to a file processing approach.
Learning Objectives • Explain how database management software helps business professionals and supports the operations and management of a business. • Provide examples to illustrate each of the following concepts: • Major types of databases. • Data warehouses and data mining. • Logical data elements. • Fundamental database structures. • Database development.
Why Study Data Resource Management? • Today’s business enterprises cannot survive or succeed without quality data about their internal operations and external environment.
Data Resource Management Definition: • A managerial activity that applies information systems technologies to the task of managing an organization’s data resources to meet the information needs of their business stakeholders
Foundation Data Concepts • Character – single alphabetic, numeric or other symbol • Field – group of related characters • Entity – person, place, object or event • Attribute – characteristic of an entity
Foundation Data Concepts • Record – collection of attributes that describe an entity • File – group of related records • Database – integrated collection of logically related data elements
Types of Databases • Operational – store detailed data needed to support the business processes and operations of a company • Distributed – databases that are replicated and distributed in whole or in part to network servers at a variety of sites
Types of Databases • External – contain a wealth of information available from commercial online services and from many sources on the World Wide Web • Hypermedia – consist of hyperlinked pages of multimedia
Data Warehouse Definition: • Large database that stores data that have been extracted from the various operational, external, and other databases of an organization
Data Mart Definition: • Databases that hold subsets of data from a data warehouse that focus on specific aspects of a company, such as a department or a business process
Data Mining Definition: • Analyzing the data in a data warehouse to reveal hidden patterns and trends in historical business activity
Data Mining Uses • Perform “market-basket analysis” to identify new product bundles. • Find root causes to quality or manufacturing problems. • Prevent customer attrition and acquire new customers. • Cross-sell to existing customers. • Profile customers with more accuracy.
Traditional File Processing Definition: • Data are organized, stored, and processed in independent files of data records
Problems of File Processing • Data Redundancy – duplicate data requires an update to be made to all files storing that data • Lack of Data Integration – data stored in separate files require special programs for output making ad hoc reporting difficult • Data Dependence – programs must include information about how the data is stored so a change in storage format requires a change in programs
Database Management Approach Definition: • Consolidates data records into one database that can be accessed by many different application programs. • Software interface between users and databases • Data definition is stored once, separately from application programs
Database Management Software (DBMS) Definition: • Software that controls the creation, maintenance, and use of databases
Database Interrogation Definition: • Capability of a DBMS to report information from the database in response to end users’ requests • Query Language – allows easy, immediate access to ad hoc data requests • Report Generator - allows quick, easy specification of a report format for information users have requested
Database Maintenance • Updating a database continually to reflect new business transactions and other events • Updating a database to correct data and ensure accuracy of the data
Application Development • End users, systems analysts, and other application developers can use the internal 4GL programming language and built-in software development tools provided by many DBMS packages to develop custom application programs.
Database Structures • Hierarchical – relationships between records form a hierarchy or treelike structure • Network – data can be accessed by one of several paths because any data element or record can be related to any number of other data elements
Relational Database Structure Definition: • All data elements within the database are viewed as being stored in the form of simple tables
Multidimensional Database Structure Definition: • Variation of the relational model that uses multidimensional structures to organize data and express the relationships between data
Object-Oriented Database Structure Definition: • Can accommodate more complex data types including graphics, pictures, voice and text • Encapsulation – data values and operations that can be performed on them are stored as a unit • Inheritance – automatically creating new objects by replicating some or all of the characteristics of one or more existing objects
Evaluation of Database Structures • Hierarchical data structure is best for structured, routine types of transaction processing. • Network data structure is best when many-to-many relationships are needed. • Relational data structure is best when ad hoc reporting is required.
Database Development • Enterprise-wide database development is usually controlled by database administrators (DBA) • Data dictionary – catalog or directory containing metadata • Metadata – data about data
Data Planning • Database administrators and designers work with corporate and end user management to develop an enterprise model that defines the basic business process of the enterprise.
Data Modeling Definition: • Process where the relationships between data elements are identified
